1 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Department of Communications 2006/07 Annual Report Presentation to Portfolio Committee on Communications 6 November 2007 Cape Town

APOLOGIES  Ms. Lyndall Shope-Mafole Director General  Ms. Rosey SekeseDeputy Director-General: ICT Infrastructure Development  Leading the South African Delegation, made up of DOC, DFA, ICASA, DST, DOT, DOD,SAPS, Aeronautical Services, Marine Services and industry to the ITU World Radiocommunication Conference (WRC) in Geneva.  The WRC is a treaty conference whose decisions are binding globally  The Conference is held once every three or four years and decides on the use of the frequency spectrum globally. 2 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development TEAM DOC LEADERSHIP CORE Gerda GräbeActing DG Harry MathabatheDDG: Finance & ICT Enterprise Development Keith ShongweDDG: ICT International Affairs & Trade Norman MunzheleleActing DDG: ICT Policy Development Harold WessoActing CEO: Meraka e-skills Institute Basani BaloyiCD: Human Resources Management Sibongile MakopiCD: Shareholder Management Botlenyana MokheleCD: 2010 Broadcasting 3

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development MANDATE AND FUNCTIONS MANDATE : To create a favourable ICT environment that ensures South Africa has capacity to advance its socio-economic development goals, support the renewal of Africa and build a better world. CORE FUNCTIONS:  To develop ICT policies and legislation that stimulates and enhances the sustainable economic development of the South African economy and positively impact on the social well being of all our people  To ensure the existence of a robust, reliable and affordable ICT infrastructure  To ensure the availability of appropriate ICT infrastructure and services to increase the capacity of the State to deliver and exercise oversight on State Owned Enterprises (SOE’s)  To implement South Africa’s foreign policy in the context of the ICT sector 4

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 5 VISION A global leader in harnessing Information Communication Technologies for Socio-economic development MISSION To enhance the well being of the peoples of South Africa, the African continent and the world through the creation of a sustainable and enabling Information Communication Technology environment.

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 6 STRATEGIC FOCUS AREAS The Department’s key objectives were grouped under the following broad strategic focus areas, based on Government priorities:  Achieve higher rates of investment in the economy  Increase the competitiveness of the economy  Broaden participation in the economy  Contribute to building a better world  Contribute to the capacity of the State to deliver

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  Broadcasting Digital Migration: Flagship project of DoC – with numerous benefits for the country  Specialised television services  Increased local content  More regional content of national interest  Additional local language content  New channels to cater for education, health, youth, sport, SMMEs  Access to government services and information (e-government)  Broadcasting Digital Migration Strategy and the Implementation Plan were finalised  Cabinet approved 1 November 2008 as the digital signal switch- on and 1 November 2011 as the analogue signal switch off date, providing for three dual illumination period. ACHIEVE HIGHER RATES OF INVESTMENT IN THE ECONOMY 7

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  Policy directives for new and upgraded post offices were gazetted  The following policy directives aimed to reduce the cost to communicate were finalised:  International terrestrial and submarine cable  Robust, reliable and affordable international connectivity  Increasing competition through conversion of VANS licenses  Access to emergency communications  Frequency spectrum  Procedures and criteria for awarding radio frequency spectrum licenses  Underserviced area licenses  Local loop unbundling process  World Space INCREASE THE COMPETITIVENESS OF THE ECONOMY 8

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  National Emergency Communications  PPP document as well as PPP feasibility study have been completed with regards to the 112 Emergency Call Center BROADEN PARTICIPATION IN THE ECONOMY 9

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development AFRICA  The Policy and Regulatory Framework for NEPAD ICT Broadband Infrastructure Network for Eastern and Southern Africa signed - the first and largest of its kind in the world  NEPAD e-school demo project finalised and ready for its launching in six schools in 2007  The SA/Sudan Joint Bilateral Commission was launched in May 2006 in Pretoria SOUTH-SOUTH COOPERATION  The IBSA Framework of Co-operation was signed making it the first and most comprehensive in the IBSA trilateral. CONTRIBUTE TO A BETTER WORLD 10

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development MULTILATERAL  RSA participated in ITU Plenipotentiary Conference and elected to the ITU Council for fourth time in a row  South Africa participated in the ITU Regional Radio- communication Conference, elected chair and expert of the planning Committee for region one (Europe and Africa)  South Africa was elected to Chair the African Support Committee to provide support for Kenya in the 2008 Congress  As part of World Summit on the Information Society (WSIS) follow-up, organised and hosted the Information Ethics Conference CONTRIBUTE TO A BETTER WORLD (cont) 11

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  The Postal Service Amendment Bill was passed in Parliament and signed into law by the President Following recommendations for the licensing by ICASA, more USALS were licensed.  The Postal Regulator Staff was successfully transferred to ICASA in line with the ICASA Amendment Act and the Labour Relations Act.  Unqualified Audit opinion for the 5th consecutive year and for the first time without any matters of emphasis  Improved spending patterns with total spend being 99,8% of the total budget  Completed a risk assessment - the basis for the completion of a new Fraud Prevention Plan and Risk Management Plan IMPROVE CAPACITY OF THE STATE TO DELIVER 12

 326 of the 394 funded positions on the departmental structure were filled  31 SMS, 16 MMS and 2 ASD completed the Leadership and Management Development Programme with University of Pretoria Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development IMPROVE CAPACITY OF THE STATE TO DELIVER (cont.) 13

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development IMPROVE CAPACITY OF THE STATE TO DELIVER (cont.)  Employment Equity Statistics  All staff  SMS members  People with disabilities MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite (46%) MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite (34%) MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite (1.2%) 14

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PRESIDENTIAL NATIONAL COMMISSION ON INFORMATION SOCIETY AND DEVELOPMENT (PNC on ISAD) 15

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  In line with the World Summit on the Information Society (WSIS) Plan of Action and the Presidential International Advisory Council on Information Society and Development (PIAC on ISAD) recommendation, a National Information Society and Development (ISAD) Plan was developed with the National Working Group (NWG)  NWG was made up of representatives of Directors-General of National Departments, provinces and SALGA.  Cabinet approved the ISAD Plan as a framework for building an inclusive information society in SA  Cabinet also approved, contained in the ISAD Plan, the country’s vision for building an inclusive information society in SA as; ‘ Establish South Africa as an advanced information society in which ICTs tools and Information are key drivers of economic and societal development’ Planning and Foresight 16

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  To ensure a coordinated and integrated implementation of the ISAD Plan, Cabinet also approved the Institutional Mechanisms  The Ministerial ISAD Committee  To be chaired by the Presidency  Supported by the Forum of South African Directors-General ( FOSAD) ISAD Cluster  The ISAD Intergovernmental Relation Forum (ISAD IGRF)  The ISAD IGR F was launched in December 2006  Chaired by the Minister of Communications with the Minister of Public Service and Administration as the first Deputy Chairperson and Deputy Minister of Communications as the second Deputy Chairperson.  The Forum has two MECs per province (nominated by the Premiers) as well as the CEO of the House of Traditional Leaders Coordination and Integration 17

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  In line with the government-wide monitoring programme, a strategic framework for measuring the impact of ICTs on South Africa’s development was finalized  A National Working Committee, consisting of relevant stakeholders, developed an Information Society core indicators  Consultation on the development of a measuring tool started to measure the uptake and usage of Information and Communication Technology  The e-Barometer measurement tool, in line with the WSIS ICT Opportunity Index, is aimed at measuring the magnitude of the digital divide in the country Evaluation and Impact Assessment 18

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  In implementing the National ISAD Plan, decided to target youth sector with the aim of contributing towards addressing poverty and unemployment among youth.  In collaboration with the National Youth Commission and Umsobomvu Youth Fund, the PNC developed the Youth ISAD Programme.  The Youth ISAD Programme was adopted, with a vision aligned to the national vision as: “To empower youth to be active participants in the building of an inclusive Information Society and contributing towards bettering the lives of all our people”  460 youth were identified from all nine provinces to be trained and to establish e-cooperatives Special Projects 19

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  To ensure that the PNC effective stakeholder management, multi-stakeholder engagement strategy and its implementation plan were finalized  In line with government priorities, Nodal Points were targeted with the aim profiling them to inform Information Society interventions to be initiated  Working closely with the Technical Champions in these nodes, a work study visit to twelve of the thirteen nodal areas were undertaken to introduce the work of the PNC on ISAD and to source first hand information on the challenges the nodes face  The launch ISAD IGR F further gave great impetus to the efforts of building an inclusive Information Society especially at provincial and local government spheres of government. Intergovernmental Relations 20

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Budget vs Actual Performance for the 2006/07 Financial Year 21

STATEMENT OF FINANCIAL PERFORMANCE REVENUE 2006/072005/06 R’000 Annual appropriation ,031,683 Departmental revenue ,178,882 Local and foreign aid assistance -1,000 Total Revenue ,211,565 Current expenditure Compensation of employees ,362 Goods and Services ,464 Financial transactions in assets & liabilities Local and foreign aid assistance 5964 Total current expenditure , Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

FINANCIAL PERFORMANCE (CONT.) 2006/072005/06 R’000 Transfers and subsidies Expenditure for capital assets Machinery and equipment Software & other intangible assets Local and foreign aid assistance-108 Total expenditure for capital assets Total Expenditure Sub total Transferred/surrendered to National Treasury Balance2,7091,680 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 23

SUMMARY OF ECONOMIC CLASSIFICATION 2006/ /06 Economic Classification Final Appropriation Actual Expenditure VarianceFinal Appropriation Actual Expenditure Current payments Transfers and subsidies Payments for capital assets TOTAL Local and foreign aid assistance GRAND TOTAL Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

25 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

APPROPRIATION STATEMENT 2006/072005/06 Programme Final Appropriation Actual Expenditure Variance Expenditure as % of final appropriation Final Appropria- tion Actual Expenditure 1. Administration % Strategic Policy Coordination and Integration % Policy Development % Finance and Shareholder Management % Transfers and Subsidies Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

APPROPRIATION STATEMENT (cont) 2006/072005/06 Programme Final Appropria- tion Actual Expenditure Variance Expendi- ture as % of final appropria- tion Final Appropria- tion Actual Expenditure 5. Innovative Applications and Research % Presidential National Commission % Total ,8% Local and foreign aid assistance * Grand Total * Expenditure incurred on donor funding 27 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

DETAILS OF TRANSFER PAYMENTS Adjusted Appropriation 2006/07 R’000 Actual Transfer R’000 Adjusted Appropriation 2005/06 R’000 USA USF ICASA NEMISA SAPO Subsidy Sentech SABC: Public Broadcaster SABC: Channel Africa Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

DETAILS OF TRANSFER PAYMENTS (CONT.) Adjusted Appropriation 2006/07 R’000 Actual Transfer R’000 Adjusted Appropriation 2005/06 SABC: Programme Production SABC: Community Radio Stations za Domain Name Authority1 500 Meraka Institute Sector Education and Training Authority: ISETT-SETA International Telecommunications Union- SA/ITU/UPU joint project NEPAD Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

FUNDING REQUIREMENTS FOR THE 2008 MTEF: OPEX Policy Priority2008/09 R’ /10 R’ /11 R’000 Sentech: Digital Terrestrial Migration Meraka Institute ICASA Funding for personnel TOTAL Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

FUNDING REQUIREMENTS FOR THE 2008 MTEF: CAPEX 2008/09 R’ /10 R’ /11 R’000 Sentech: Broadcasting Digital Migration Sentech: NWBN ICASA TOTAL Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development HOWEVER… Challenges remain in the following areas:  ICT infrastructure (especially broadband)  Access and accessibility  Availability  High cost to communicate – although it is coming down  Low level of ICT usage by Government, business and citizens  Scarce ICT skills and low e -literacy  Limited local content development capacity 32

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development CONCLUSION We started addressing these challenges:  Policy directives  ISAD Plan implementation and skills development  Establishment of the Meraka e-skills institute  Established a chief directorate to deal with local content development  Local content has been prioritised as part of the Industrial Policy Action Plan  Initial allocation of R0,5 billion for Sentech’s wireless broadband network  Accelerated infrastructure development in preparation for 2010 FIFA World Cup 33

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development THANK YOU 34